EURUSD broke below support at 1,1280 yesterday and exited the short-term bullish channel turning short-term trend to bearish again. The inability to break above the medium-term resistance of 1.1330 lead to a rejection and a move towards 1.1250 and lower. Bulls need to react now or we might see new lows below 1.12-1.1170 soon.
Red lines - medium-term bearish channel
Black lines - bullish wedge pattern
EURUSD got rejected once again at the upper channel boundary. Medium-term trend remains bearish and after yesterday's reversal and failure to hold above 1.1250 is a bearish short-term sign. The bigger picture in EURUSD however as shown in the weekly chart above remains bearish. As long as price is inside the downward sloping wedge pattern and inside the red bearish channel, trend will remain bearish. Major support is at 61.8% Fibonacci retracement that we already reached and so far support is being respected. A major turning point could be around the corner but bulls need to see more signs of strength. Bulls need to recapture 1.13 fast and stay above it. Major trend reversal will be confirmed on a break above 1.14-1.1450.
Until then price is vulnerable to a move below 1.12.The material has been provided by InstaForex Company - www.instaforex.com